The BCRA raised the minimum guaranteed rate for fixed terms

Summary:

On August 14, 2023, the Director of the Central Bank of the Argentine Republic announced an increase in the minimum guaranteed interest rate for fixed-term deposits from individuals. The new rate for deposits of up to 30 million pesos, with a term of 30 days or less, is set at 118% per annum, resulting in an effective monthly interest rate of 9.7%.

For fixed-term deposits in the private sector, the minimum guaranteed interest rate is set at 111% per annum, with an effective monthly interest rate of 9.17%. This increase in interest rates is aimed at maintaining the stability of the financial system and providing a more attractive incentive for individuals and businesses to place their funds in fixed-term deposits.

It is essential to note that these rates are minimum guarantees and may vary depending on the specific terms and conditions of the deposit agreements. Additionally, these rates are subject to change and may be affected by various economic factors and monetary policies.

The announcement has significant implications for individuals and businesses in Argentina, particularly those with liquid assets or deposits that can benefit from the increased interest rates. It also underscores the central bank’s efforts to maintain financial stability and promote economic growth in the country.